B.C. pot giant Tilray to acquire hemp food company Manitoba Harvest for up to $419 million

Tilray Inc. has signed a deal to acquire Hemp Hearts-maker Manitoba Harvest for up to $419 million in cash and stock as the two companies aim to launch CBD-infused food and wellness products for North America.

The companies say the acquisition adds natural food products to Tilray’s portfolio and Manitoba Harvest will be able to tap the Nanaimo, B.C.-based company’s expertise in working with cannabinoids.

Upon completion of the transaction, which is subject to approval, Tilray will pay $150 million in cash and $127.5 million in stock.

Six months after close Tilray will pay another $50 million in cash and $42.5 million in stock, and depending the achievement of certain milestones, the cannabis producer will issue another $49 million in company stock.

Manitoba Harvest, whose portfolio of products include Hemp Hearts, Hemp Oil and granola in stores such as Costco and Wal-Mart in Canada and the U.S., plans to launch a line of CBD-infused products south of the border this summer.

Tilray’s chief executive says Manitoba Harvest’s distribution network will help the cannabis grower accelerate its push to sell CBD products in the U.S. and Canada, where permissible.